Development of our businesses

In fiscal 2011, Henkel’s worldwide sales amounted to 15,605 million euros, 42 percent of which were generated in the growth regions of Eastern Europe, Africa / Middle East, Latin America, and Asia (excluding Japan). We intend to increase this figure to 45 percent by 2012. Some 54 percent of our global workforce are now based in the growth regions, where we currently source 40 percent of our global purchasing volume. We are therefore an important employer and local economic partner in these regions as well.

In growth regions, in particular, the question of the social added value of products takes on greater significance. Products aligned to the needs of consumers in the lower income brackets not only have enormous economic potential, but also make a positive social contribution in terms of domestic hygiene and health. In order to do justice to the differing needs throughout the world, we pursue different strategies according to individual market situations:

Globally uniform products: Wherever customers and consumers around the world have the same needs and expectations, we offer globally uniform products. Examples include the internationally identical demands made on an instant adhesive or on our industrial adhesives.

Locally adapted product offerings: Where the income levels, infrastructure or cultural needs of consumers differ, we adapt our products to local conditions, in order to make our performance and our quality accessible to the broadest possible group of people. Customers from lower income segments for example purchase small units whenever they have some funds to spare. We consider this when planning packaging units and prices. For example, our dishwashing detergent Pril Liquid is available as a single-use pack in India. For 1 rupee – equivalent to 1.5 euro cents – customers can buy a 6 milliliter pack of Pril Lime and Vinegar. The same concept is applied for our detergent MAS in Mexico. In the South American markets we offer shampoos and deodorant creams in small sales units of 10 to 20 milliliters.

Locally adapted product performance: Different regional circumstances may also require adjustments to our product formulations and performance. In North Africa and Latin America, for example, the scarcity of water necessitates careful use of this limited resource. Henkel has therefore developed and introduced a fabric softener with special ingredients that enables washing foam to be rinsed out very easily by hand. Other examples are our craftsmen and DIY products in Eastern Europe. Since the local building materials often differ from those in Western Europe, we offer locally adapted products such as the tile adhesive “CM9” or the self-smoothing floor leveling compound “Thomsit DA”. Cultural differences are also taken into account during product development. In many North African countries and in India, there is a tradition of wearing white garments. Our laundry detergent "Nadhif" for the North African market therefore contains ingredients that give the laundry a radiant white appearance.